thecryptobasic.com
A major Bitcoin whale has exited a sizable leveraged position as BTC price slid back toward the $90,000 mark.
According to blockchain analytics firm Lookonchain, a whale wallet identified as 0xFB78 closed all of its Bitcoin long positions. In total, the trader exited 3,846 BTC, worth approximately $350.4 million, locking in losses of more than $3.5 million.
The liquidation occurred during a sharp intraday drop in Bitcoin’s price, intensifying short-term leverage risk.
Aggressive Bets Set the Stage for Capitulation
Before the drawdown, Lookonchain data showed the same wallet holding 2,830 BTC in long positions valued at $259.55 million. The trader later increased exposure, depositing an additional $20 million in USDC into Hyperliquid to expand the position.
Despite the added collateral, unrealized losses had already exceeded $2 million, leaving the trade highly vulnerable as market conditions deteriorated—ultimately leading to the full position being closed during the price drop.
Broader Market Weakness Forms the Backdrop
The whale’s capitulation unfolded amid widespread market softness. On Thursday, the global cryptocurrency market fell 2% as traders locked in recent gains.
Consequently, total market capitalization declined from $3.27 trillion on Wednesday to nearly $3.2 trillion within a single day.
Price action among major assets mirrored the broader sell-off. At the time of writing, Bitcoin was trading near $90,077, down 2.8% over the past 24 hours. Ethereum slid nearly 3.7%, breaking below the $3,200 support level. Other large-cap tokens, including XRP, BNB, Solana, and Cardano, also posted losses ranging from 2% to 5%.
The pullback follows a strong rally earlier in the month. Between January 1 and January 7, the total crypto market gained more than 8%.
Bitcoin led the advance, rising 8.5% and briefly topping $94,400 on January 6. The momentum spilled into altcoins as well, with Dogecoin (DOGE), Pump.fun (PUMP), and Shiba Inu (SHIB), all recording double-digit gains.
However, Bitcoin struggled to sustain higher levels. Repeated failures to break above the $94,500 resistance, an area that also capped gains in December, have fueled skepticism about the rally’s durability.
ETF Outflows Weigh on Institutional Sentiment
Institutional flows have further pressured the market. According to data from SoSoValue, spot Bitcoin ETFs recorded nearly $730 million in net outflows over the past two days.
Ethereum ETFs also reversed course, posting $98.45 million in net outflows on Wednesday and snapping a three-day inflow streak. Solana ETFs followed a similar trend, with $40.8 million in outflows after six consecutive days of inflows.
The change in sentiment is reflected in the Crypto Fear and Greed Index. It has fallen six points in 24 hours from a multi-week high of 49 back into neutral territory.
Miner Selling Adds to Downside Pressure
Additional strain has emerged from the mining sector. U.S.-based miner Riot Platforms reportedly sold more than 1,800 BTC, worth roughly $161.6 million, citing operational needs.
Such large-scale sales can exacerbate volatility during periods of thinning liquidity and heightened uncertainty.